Mental Health Aberdeen (MHA), the vital support provider for the north-east of Scotland which recently collapsed after 75 years, is now facing allegations of “inappropriate expenditure” and is under investigation by the Scottish charity regulator.
The Office of the Scottish Charity Regulator (OSCR) confirmed: “We have received several public concerns regarding the closure of Mental Health Aberdeen, which included accusations of improper spending by the organisation. These concerns are currently under review in accordance with our standard policies and procedures”.
In its last public communication before the closure, MHA described the situation as being due in part to both financial stress and systemic pressures. The organisation said:
“Despite our team’s relentless attempts to meet the growing demand, our current revenue can no longer support the level of service we strive to provide. Like many organisations in the third sector nationwide, we are confronted with the harsh reality of being expected to accomplish more with fewer resources—an unsustainable situation.”
They added: “It is crucial that charities like ours are equipped with the necessary tools and resources to continue providing vital services to those who need them most before it is too late”.
Staff members were reportedly devastated by the sudden closure. Alan Paterson, a former counselor at MHA, told the BBC:
“During the meeting, staff were informed of layoffs and that a liquidator would be appointed.
It was devastating. Many were in tears, supporting one another in their grief. For everyone, it was sheer shock and trauma.”
He continued, “We are talking about the loss of clients who were on their counselling journeys. It’s heartbreaking”.
The Press and Journal has since revealed that Mental Health Aberdeen (MHA) had outstanding loans with Handelsbanken PLC, a UK subsidiary of the Swedish bank, at the time of the charity’s collapse.
Also, Companies House records showed MHA bosses borrowed money several times between October 2021 and March last year, with the charity spending £475,000 on buying the Aberdeen ciy centre building known as Langstane House (located opposite the Music Hall on Union Street) and carrying out renovation work after moving its head office there.
According to Scotland’s Land Information Service, MHA also took on the ownership of multiple Aberdeen addresses, including Numbers 2,4, and 6 Langstane Place, 221-227 Union Street and 1-4 Dee Street.
MHA was running six projects, five in Aberdeen and one in Aboyne, before the collapse.
Services included Aberdeen Counselling and Information Service (ACIS) and One To One Deeside, ACIS Youth – operating in primary and secondary schools in Aberdeen for children and young people – and community projects in Torry and Calsayseat, as well as the Amputee project.
At this stage, details regarding the alleged “inappropriate expenditure” remain under investigation, with OSCR agreeing to update the public as their review progresses.
MHA has not responded directly to specific allegations, but pointed to external financial and systemic factors as driving its closure.
